The Inflation Reduction Act incentives consumers to buy EVs, and PHEVs, that were assembled in North America. Here is how to tell if your EV meets the assembly requirement, as well as a list of 26 EVs we know qualify.
Table of Contents
In order to reduce carbon emissions, and fight climate change, the Inflation Reduction Act (“IRA”) incentivizes consumers to buy American made EVs. To qualify for the full $7,500 EV tax credit, electric vehicles, and the batteries that power them, must be manufactured in North America, which for the IRA’s purposes, includes Mexico and Canada.
In addition, at least 40% of the “critical minerals content” of batteries must come from U.S. sources, be recycled in North America, or come from a country with a free trade agreement with the U.S (from January 1, 2023, with annual increases in minimum content requirements thereafter).
Typically, a car with a VIN starting with 1, 4, or 5, has been made in the U.S. An EV with a VIN starting with 2 has been made in Canada, and a 3 at the start indicates the EV was built in Mexico. You can decode an EV’s VIN here.
After the IRA was signed into law, the Alternative Fuels Data Center published a list of EVs with final assembly in North America.
This list includes 2022 models and early 2023 models and is based on data submitted to the National Highway Traffic Safety Administration (NHTSA) and FuelEconomy.gov as of August 1, 2022.
Here are the 2022 EVs assembled in North America, according to the AFDC:
- Audi Q5
- BMW 330e
- BMW X5
- Chevrolet Bolt EUV
- Chevrolet Bolt EV
- Chrysler Pacifica PHEV
- Ford Escape PHEV
- Ford F Series
- Ford Mustang MACH E
- Ford Transit Van
- GMC Hummer Pickup
- GMC Hummer SUV
- Jeep Grand Cherokee PHEV
- Jeep Wrangler PHEV
- Lincoln Aviator PHEV
- Lincoln Corsair Plug-in
- Lucid Air
- Nissan Leaf
- Rivian EDV
- Rivian R1S
- Rivian R1T
- Tesla Model 3
- Tesla Model S
- Tesla Model X
- Tesla Model Y
- Volvo S60.
Here’s the AFDC’s list of 2023 EVs assembled in North America:
- BMW 330e
- Bolt EV
- Cadillac Lyriq
- Mercedes EQS SUV
- Nissan Leaf
Inclusion on these lists doesn’t necessarily mean a vehicle will qualify for the tax credit, though. Depending on the trim and date of build, a specific vehicle may have undergone assembly outside North America. The only way to know where a vehicle was assembled is to find the Vehicle Identification Number (VIN) on the label attached to the vehicle (usually inside the passenger side door).
One major caveat for anyone buying an EV in 2022
Even if a car was built in the U.S. and qualifies under all other rules, if it’s made by a carmaker that already reached the 200,000 sales cap, the EV won’t net you a tax credit in 2022. Instead, you’re best to wait until January 1, 2023, when this cap is lifted.
See also: Which Tesla models qualify for the EV tax credit?
Vehicles that seem likely to meet all other eligibility criteria but which remain trapped by this popularity cap include:
- Chevrolet Bolt EUV
- Chevrolet Bolt EV
- 2023 Bolt EV
- 2023 Cadillac Lyriq
- GMC Hummer Pickup
- GMC Hummer SUV
- Tesla Model 3
- Tesla Model S
- Tesla Model X
- Tesla Model Y